Bill Text: IL SB1673 | 2011-2012 | 97th General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Amends the Cook County Article of the Illinois Pension Code. Provides that "re-entrant" does not include any employee who enters service after January 1, 2011 and whose retirement age is 67.

Spectrum: Bipartisan Bill

Status: (Failed) 2013-01-08 - Session Sine Die [SB1673 Detail]

Download: Illinois-2011-SB1673-Amended.html

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Rep. Tom Cross

Filed: 5/31/2012

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AMENDMENT TO SENATE BILL 1673
AMENDMENT NO. ______. Amend Senate Bill 1673, AS AMENDED,
with reference to page and line numbers of House Amendment No.
7, on page 25, in line 12, after "14-132,", by inserting
"14-133,"; and
on page 25, in line 14, before "15-163", by inserting
"15-157,"; and
on page 25, in line 15, after "16-136.1,", by inserting
"16-152,"; and
on page 25, in line 16, before "2-105.1", by inserting
"1-162,"; and
on page 25, in line 18, by deleting "15-155.1,"; and
on page 26, below line 24, by inserting the following:

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"(40 ILCS 5/1-162 new)
Sec. 1-162. Optional cash balance plan.
(a) Participation and Applicability. Beginning on July 1,
2013, any Tier I employee who has made the election under
paragraph (1) of subsection (a) or (a-5) of Section 14-106.5,
paragraph (1) of subsection (a) or (a-5) of Section 15-134.6,
or paragraph (1) of subsection (a) or (a-5) of Section 16-131.7
may elect to participate in the optional cash balance plan
created under this Section.
This Section does not, however, apply to any person with
respect to service for which the person participates in the
self-managed plan established under Section 15-158.2 in lieu of
the retirement benefits otherwise provided by the State
Universities Retirement System.
The Board of Trustees of the applicable retirement system
shall promulgate rules to create an annual election wherein a
person eligible to participate in the optional cash balance
plan may elect to participate, and an active employee who is a
participant in the plan may elect to cease active
participation. The election to cease active participation
shall not disqualify the employee from eligibility to receive
an interest credit under subsection (f), a distribution upon
termination under subsection (f-10), a refund under subsection
(f-15), a retirement annuity under subsection (f-15), a
retirement annuity under subsection (g), or a survivor annuity

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under subsection (k), or from eligibility to resume active
participation in the optional cash balance plan in a subsequent
year.
(b) Title. The package of benefits provided under this
Section may be referred to as the "optional cash balance plan".
Persons subject to the provisions of this Section may be
referred to as "participants in the optional cash balance
plan".
(b-5) Definitions. As used in this Section:
"Account" means the notional cash balance account
established under this Section for a participant in the
optional cash balance plan.
"Consumer Price Index-U" means the Consumer Price Index
published by the Bureau of Labor Statistics of the United
States Department of Labor that measures the average change in
prices of goods and services purchased by all urban consumers,
United States city average, all items, 1982-84 = 100.
"Salary" means "compensation" as defined in Article 14,
"earnings" as defined in Article 15, or "salary" as defined in
Article 16, whichever is applicable, without regard to the
limitation in subsection (b-5) of Section 1-160.
"Tier I employee" means a person who is a Tier I employee
under the applicable Article of this Code.
(c) Cash Balance Account. A notional cash balance account
shall be established by the applicable retirement system for
each participant in the optional cash balance plan. The account

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is notional and does not contain any actual money segregated
from the commingled assets of the retirement system. The cash
balance in the account is to be used in calculating benefits as
provided in this Section, but is not to be used in the
calculation of any refund, transfer, or other benefit under the
applicable Article of this Code.
The amounts to be credited to the cash balance account
shall consist of (i) amounts contributed by or on behalf of the
participant as employee contributions and (ii) interest credit
that is attributable to the account, both as provided in this
Section.
Whenever necessary for the prompt calculation or
administration, or when the System lacks information necessary
to the calculation or administration otherwise required of or
for a benefit under this Section, the applicable retirement
system may estimate an amount to be credited to or debited from
a participant's cash balance account and then adjust the amount
so credited or debited when more accurate information becomes
available.
The applicable retirement system shall give to each
participant in the optional cash balance plan who has not yet
retired annual notice of (1) the balance in the participant's
cash balance account and (2) an estimate of the retirement
annuity that will be payable to the participant if he or she
retires at age 59 1/2.
(d) Employee Contributions. In addition to the other

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contributions required under the applicable Article, each
participant shall make contributions to the applicable
retirement system at the rate of 2% of each payment of salary.
The amount of each contribution shall be credited to the
participant's cash balance account upon receipt and after the
retirement system's reconciliation of the contribution.
(e) Employer Contributions. There shall be no employer
contributions under the optional cash balance plan.
(f) Interest Credit. An amount representing earnings on
investments shall be determined by the retirement system in
accordance with this Section and credited to the participant's
cash balance account for each fiscal year in which there is a
positive balance in that account; except that no additional
interest credit shall be credited while an annuity based on the
account is being paid. The interest credit amount shall be a
percentage of the average quarterly balance in the cash balance
account during that fiscal year, and shall be calculated on
June 30.
The percentage shall be the assumed treasury rate for the
previous fiscal year, unless neither the retirement system's
actual rate of investment earnings for the previous fiscal year
nor the retirement system's actual rate of investment earnings
for the five-year period ending at the end of the previous
fiscal year is less than the assumed treasury rate.
If both the retirement system's actual rate of investment
earnings for the previous fiscal year and the actual rate of

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investment earnings for the five-year period ending at the end
of the previous fiscal year are at least the assumed treasury
rate, then the percentage shall be:
(i) the assumed treasury rate, plus
(ii) two-thirds of the amount of the actual rate of
investment earnings for the previous fiscal year that
exceeds the assumed treasury rate.
However, in no event shall the percentage applied under this
subsection exceed 10%.
For the purposes of this subsection only, "previous fiscal
year" means fiscal year ending one year before the interest
rate is calculated.
For the purposes of this subsection only, "assumed treasury
rate" means the average annual yield of the 30-year U.S.
Treasury Bond over the previous fiscal year, but not less than
4%.
When a person applies for a benefit under this Section, the
retirement system shall apply an interest credit based on a
proration of an estimate of what the interest credit will be
for the relevant year. When the retirement system certifies the
credit on June 30, it shall adjust the benefit accordingly.
(f-10) Distribution upon Termination of Employment. Upon
termination of active employment with at least 5 years of
service credit under the applicable retirement system and prior
to making application for an annuity under this Section, a
participant in the optional cash balance plan may make an

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irrevocable election to distribute an amount not to exceed 40%
of the balance in the participant's account in the form of a
direct rollover to another qualified plan, to the extent
allowed by federal law. If the participant makes such an
election, then the amount distributed shall be debited from the
participant's cash balance account. A participant in the
optional cash balance plan shall be allowed only one
distribution under this subsection. The remaining balance in
the participant's account shall be used for the determination
of other benefits provided under this Section.
(f-15) Refund. In lieu of receiving a distribution under
subsection (f-10), at any time after terminating active
employment under the applicable retirement system, but before
receiving a retirement annuity under this Section, a
participant in the optional cash balance plan may elect to
receive a refund under this subsection. The refund shall
consist of an amount equal to the amount of all employee
contributions credited to the participant's account, but shall
not include any interest credit. If the participant so
requests, the refund may be paid in the form of a direct
rollover to another qualified plan, to the extent allowed by
federal law and in accordance with the rules of the applicable
retirement system. Upon payment of the refund, the
participant's notional cash balance account shall be closed.
(g) Retirement Annuity. A participant in the optional cash
balance plan may begin collecting a retirement annuity at age

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59 1/2, but no earlier than the date of termination of active
employment under the applicable retirement system.
The amount of the retirement annuity shall be calculated by
the retirement system, based on the balance in the cash balance
account, the assumption of future investment returns as
specified in this subsection, the participant's election to
have a lifetime survivor's annuity as specified in this
subsection, the annual increase in retirement annuity as
specified in subsection (h), the annual increase in survivor's
annuity as specified in subsection (l), and any actuarial
assumptions and tables adopted by the board of the retirement
system for this purpose. The calculation shall determine the
amount of retirement annuity, on an actuarially equivalent
basis, that shall be designed to result in the balance in the
participant's account arriving at zero on the date when the
last payment of the retirement annuity (or survivor's annuity,
if the participant elects to provide for a survivor's annuity
pursuant to this subsection) is anticipated to be paid under
the relevant actuarial assumptions. A retirement annuity or a
survivor's annuity provided under this Section shall be a life
annuity and shall not expire if the account balance equals
zero.
The annuity payment shall begin on the date specified by
the participant submitting a written application, which date
shall not be prior to termination of employment or more than
one year before the application is received by the board;

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however, if the participant is not an employee of an employer
participating in this System or in a participating system as
defined in Article 20 of this Code on April 1 of the calendar
year next following the calendar year in which the participant
attains age 70 1/2, the annuity payment period shall begin on
that date regardless of whether an application has been filed.
The participant may elect, under the participant's written
application for retirement, to receive a reduced annuity
payable for his or her life and to have a lifetime survivor's
annuity in a monthly amount equal to 50%, 75%, or 100% of that
reduced monthly amount, to be paid after the participant's
death to his or her eligible survivor. Eligibility for a
survivor's annuity shall be determined under the applicable
Article of this Code.
For the purpose of calculating retirement annuities,
future investment returns shall be assumed to be a percentage
equal to the average yield of the 30-year U.S. Treasury Bond
over the 5 fiscal years prior to the calculation of the initial
retirement annuity, plus 250 basis points; but not less than 4%
nor more than 8%.
(h) Annual Increase in Retirement Annuity. The retirement
annuity shall be subject to an automatic annual increase in an
amount equal to 3% of the originally granted annuity on each
January 1 occurring on or after the first anniversary of the
annuity start date.
(i) Disability Benefits. There are no disability benefits

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provided under the optional cash balance plan, and no amounts
for disability shall be deducted from the account of a
participant in the optional cash balance plan. The disability
benefits provided under the applicable retirement system apply
to participants in the optional cash balance plan.
(j) Return to Service. Upon a return to service under the
same retirement system after beginning to receive a retirement
annuity under the optional cash balance plan, the retirement
annuity shall be suspended and active participation in the
optional cash balance plan shall resume. Upon termination of
the employment, the retirement annuity shall resume in an
amount to be recalculated in accordance with subsection (g),
taking into effect the changes in the cash balance account. If
a retired annuitant returns to service, his or her notional
cash balance account shall be decreased by each payment of
retirement annuity prior to the return to service.
(k) Survivor's Annuity - Death before Retirement. In the
case of a participant in the optional cash balance plan who had
less than 5 years of service under the applicable Article and
had not begun receiving a retirement annuity, the eligible
survivor shall be entitled only to a refund of employee
contributions under subsection (f-15).
In the case of a participant in the optional cash balance
plan who had at least 5 years of service under the applicable
Article and had not begun receiving a retirement annuity, the
eligible survivor shall be entitled to receive a survivor's

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annuity beginning at age 59 1/2 upon written application. The
survivor's annuity shall be calculated in the same manner as a
retirement annuity under subsection (g). At any time before
receiving a survivor's annuity, the eligible survivor may claim
a distribution under subsection (f-10) or a refund under
subsection (f-15). The deceased participant's account shall
continue to receive interest credit until the eligible survivor
begins to receive a survivor's annuity or receives a refund of
employee contributions under subsection (f-15).
Eligibility for a survivor's annuity shall be determined
under the applicable Article of this Code. A child's or
parent's annuity for an otherwise eligible child or dependent
parent shall be in the same amount, if any, prescribed under
the applicable Article.
(l) Annual Increase in Survivor's Annuity. A survivor's
annuity granted under subsection (g) or (k) shall be subject to
an automatic annual increase in an amount equal to 3% of the
originally granted annuity on each January 1 occurring on or
after the first anniversary of the annuity start date.
(m) Applicability of Provisions. The following provisions,
if and as they exist in this Code, do not apply to participants
in the optional cash balance plan with respect to participation
in the optional cash balance plan, except as they are
specifically provided for in this Section:
(1) minimum service or vesting requirements (other
than as provided in this Section);

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(2) provisions limiting a retirement annuity to a
specified percentage of salary;
(3) provisions authorizing a minimum retirement or
survivor's annuity or a supplemental annuity;
(4) provisions authorizing any form of retirement
annuity or survivor's annuity not authorized under this
Section;
(5) provisions authorizing a reversionary annuity
(other than the survivor's annuity under subsection (g));
(6) provisions authorizing a refund of employee
contributions upon termination of service (other than upon
the death of the participant without an eligible survivor)
or any lump-sum payout in lieu of a retirement or
survivor's annuity (other than the distribution under
subsection (f-10) or the refund under subsection (f-15) of
this Section;
(7) provisions authorizing optional service credits or
the payment of optional additional contributions; or
(8) a level income option.
The Retirement Systems Reciprocal Act (Article 20 of this
Code) does not apply to participation in the optional cash
balance plan and does not affect the calculation of benefits
payable under this Section.
The other provisions of this Code continue to apply to
participants in the optional cash balance plan, to the extent
that they do not conflict with this Section. In the case of a

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conflict between the provisions of this Section and any other
provision of this Code, the provisions of this Section control.
(n) Rules. The Board of Trustees of the applicable
retirement system may adopt rules and procedures for the
implementation of this Section, including but not limited to
determinations of how to integrate the administration of this
Section with the requirements of the applicable Article and any
other applicable provisions of this Code.
(o) Public Pension Division. The Public Pension Division of
the Department of Insurance shall determine in October of each
year the annual unadjusted percentage increase (but not less
than zero) in the Consumer Price Index-U for the 12 months
ending with the preceding September. The Division shall certify
its determination to the Board of Trustees of the State
Universities Retirement System by November 1 of each year.
(p) Prospective Modification. The provisions set forth in
this Section are subject to prospective changes made by law
provided that any such changes shall not apply to any benefits
accrued under this Section prior to the effective date of any
amendatory Act of the General Assembly.
(q) Qualified Plan Status. No provision of this Section
shall be interpreted in a way that would cause the applicable
retirement system to cease to be a qualified plan under section
461 (a) of the Internal Revenue Code of 1986."; and
on page 44, in line 15, by changing "14-106.5" to "2-110.3";

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and
on page 52, in line 20, by changing "the Township School
District Trustees" to "an association or not-for-profit
corporation, membership in which is authorized under Section
85-15 of the Township Code"; and
on page 61, in line 25, after "14-103.10.", by inserting "In
addition, a Tier I employee who has made the election under
paragraph (1) of subsection (a) of this Section shall receive
the right to also participate in the optional cash balance plan
established under Section 1-162."; and
on page 62, in line 8, after "14-103.10.", by inserting "In
addition, a Tier I retiree who returns to active service and
has made the election under paragraph (1) of subsection (a-5)
of this Section shall receive the right to also participate in
the optional cash balance plan established under Section
1-162."; and
on page 62, in line 19, after "requirement.", by inserting "In
addition, a Tier I employee who has made the election under
paragraph (2) of subsection (a) of this Section shall not
receive the right to participate in the optional cash balance
plan established under Section 1-162."; and

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on page 63, in line 4, after "requirement.", by inserting "In
addition, a Tier I retiree who returns to active service and
has made the election under paragraph (2) of subsection (a-5)
of this Section shall not receive the right to participate in
the optional cash balance plan established under Section
1-162."; and
on page 83, below line 11, by inserting the following:
"(40 ILCS 5/14-133) (from Ch. 108 1/2, par. 14-133)
Sec. 14-133. Contributions on behalf of members.
(a) Each participating employee shall make contributions
to the System, based on the employee's compensation, as
follows:
(1) Covered employees, except as indicated below, 3.5%
for retirement annuity, and 0.5% for a widow or survivors
annuity;
(2) Noncovered employees, except as indicated below,
7% for retirement annuity and 1% for a widow or survivors
annuity;
(3) Noncovered employees serving in a position in which
"eligible creditable service" as defined in Section 14-110
may be earned, 1% for a widow or survivors annuity plus the
following amount for retirement annuity: 8.5% through
December 31, 2001; 9.5% in 2002; 10.5% in 2003; and 11.5%
in 2004 and thereafter;

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(4) Covered employees serving in a position in which
"eligible creditable service" as defined in Section 14-110
may be earned, 0.5% for a widow or survivors annuity plus
the following amount for retirement annuity: 5% through
December 31, 2001; 6% in 2002; 7% in 2003; and 8% in 2004
and thereafter;
(5) Each security employee of the Department of
Corrections or of the Department of Human Services who is a
covered employee, 0.5% for a widow or survivors annuity
plus the following amount for retirement annuity: 5%
through December 31, 2001; 6% in 2002; 7% in 2003; and 8%
in 2004 and thereafter;
(6) Each security employee of the Department of
Corrections or of the Department of Human Services who is
not a covered employee, 1% for a widow or survivors annuity
plus the following amount for retirement annuity: 8.5%
through December 31, 2001; 9.5% in 2002; 10.5% in 2003; and
11.5% in 2004 and thereafter.
(a-1) In addition to the contributions required under
subsection (a), an employee who elects to participate in the
optional cash balance plan under Section 1-162 shall pay to the
System for the purpose of participating in the optional cash
balance plan an additional contribution of 2% of each payment
of compensation received while he or she is a participant in
the optional cash balance plan. These contributions shall not
be used for the purpose of determining any benefit under this

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Article except as provided in the optional cash balance plan.
(b) Contributions shall be in the form of a deduction from
compensation and shall be made notwithstanding that the
compensation paid in cash to the employee shall be reduced
thereby below the minimum prescribed by law or regulation. Each
member is deemed to consent and agree to the deductions from
compensation provided for in this Article, and shall receipt in
full for salary or compensation.
(Source: P.A. 92-14, eff. 6-28-01.)"; and
on page 103, in line 19, after "15-111.", by inserting "In
addition, a Tier I employee who has made the election under
paragraph (1) of subsection (a) of this Section shall receive
the right to also participate in the optional cash balance plan
established under Section 1-162."; and
on page 104, in line 1, after "15-111.", by inserting "In
addition, a Tier I retiree who returns to active service and
has made the election under paragraph (1) of subsection (a-5)
of this Section shall receive the right to also participate in
the optional cash balance plan established under Section
1-162."; and
on page 104, in line 11, after "requirement.", by inserting "In
addition, a Tier I employee who has made the election under
paragraph (2) of subsection (a) of this Section shall not

09700SB1673ham008 - 18 - LRB097 21834 EFG 70523 a
receive the right to participate in the optional cash balance
plan established under Section 1-162."; and
on page 104, in line 22, after "requirement.", by inserting "
In addition, a Tier I retiree who returns to active service and
has made the election under paragraph (2) of subsection (a-5)
of this Section shall not receive the right to participate in
the optional cash balance plan established under Section
1-162."; and
on page 126, in lines 17 and 18, by changing "by more than 6%,"
to "by more than 6%,"; and
on page 126, in line 22, by changing "portion of the" to
"portion of the"; and
on page 126, in lines 22 and 23, by changing "that is in excess
of 6%" to "that is in excess of 6%"; and
on page 127, by replacing lines 2 through 9 with
"documentation."; and
by deleting line 21 on page 132 through line 6 on page 133 and
inserting in lieu thereof the following:
"(40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)

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Sec. 15-157. Employee Contributions.
(a) Each participating employee shall make contributions
towards the retirement benefits payable under the retirement
program applicable to the employee from each payment of
earnings applicable to employment under this system on and
after the date of becoming a participant as follows: Prior to
September 1, 1949, 3 1/2% of earnings; from September 1, 1949
to August 31, 1955, 5%; from September 1, 1955 to August 31,
1969, 6%; from September 1, 1969, 6 1/2%. These contributions
are to be considered as normal contributions for purposes of
this Article.
Each participant who is a police officer or firefighter
shall make normal contributions of 8% of each payment of
earnings applicable to employment as a police officer or
firefighter under this system on or after September 1, 1981,
unless he or she files with the board within 60 days after the
effective date of this amendatory Act of 1991 or 60 days after
the board receives notice that he or she is employed as a
police officer or firefighter, whichever is later, a written
notice waiving the retirement formula provided by Rule 4 of
Section 15-136. This waiver shall be irrevocable. If a
participant had met the conditions set forth in Section
15-132.1 prior to the effective date of this amendatory Act of
1991 but failed to make the additional normal contributions
required by this paragraph, he or she may elect to pay the
additional contributions plus compound interest at the

09700SB1673ham008 - 20 - LRB097 21834 EFG 70523 a
effective rate. If such payment is received by the board, the
service shall be considered as police officer service in
calculating the retirement annuity under Rule 4 of Section
15-136. While performing service described in clause (i) or
(ii) of Rule 4 of Section 15-136, a participating employee
shall be deemed to be employed as a firefighter for the purpose
of determining the rate of employee contributions under this
Section.
(a-1) In addition to the contributions required under
either subsections (a), (b), and (c) or subsection (a-1), an
employee who elects to participate in the optional cash balance
plan under Section 1-162 shall pay to the System for the
purpose of participating in the optional cash balance plan a
contribution of 2% of each payment of earnings received while
he or she is a participant in the optional cash balance plan.
These contributions shall not be used for the purpose of
determining any benefit under this Article except as provided
in the optional cash balance plan.
(b) Starting September 1, 1969, each participating
employee shall make additional contributions of 1/2 of 1% of
earnings to finance a portion of the cost of the annual
increases in retirement annuity provided under Section 15-136,
except that with respect to participants in the self-managed
plan this additional contribution shall be used to finance the
benefits obtained under that retirement program.
(c) In addition to the amounts described in subsections (a)

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and (b) of this Section, each participating employee shall make
contributions of 1% of earnings applicable under this system on
and after August 1, 1959. The contributions made under this
subsection (c) shall be considered as survivor's insurance
contributions for purposes of this Article if the employee is
covered under the traditional benefit package, and such
contributions shall be considered as additional contributions
for purposes of this Article if the employee is participating
in the self-managed plan or has elected to participate in the
portable benefit package and has completed the applicable
one-year waiting period. Contributions in excess of $80 during
any fiscal year beginning before August 31, 1969 and in excess
of $120 during any fiscal year thereafter until September 1,
1971 shall be considered as additional contributions for
purposes of this Article.
(d) If the board by board rule so permits and subject to
such conditions and limitations as may be specified in its
rules, a participant may make other additional contributions of
such percentage of earnings or amounts as the participant shall
elect in a written notice thereof received by the board.
(e) That fraction of a participant's total accumulated
normal contributions, the numerator of which is equal to the
number of years of service in excess of that which is required
to qualify for the maximum retirement annuity, and the
denominator of which is equal to the total service of the
participant, shall be considered as accumulated additional

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contributions. The determination of the applicable maximum
annuity and the adjustment in contributions required by this
provision shall be made as of the date of the participant's
retirement.
(f) Notwithstanding the foregoing, a participating
employee shall not be required to make contributions under this
Section after the date upon which continuance of such
contributions would otherwise cause his or her retirement
annuity to exceed the maximum retirement annuity as specified
in clause (1) of subsection (c) of Section 15-136.
(g) A participating employee may make contributions for the
purchase of service credit under this Article.
(Source: P.A. 90-32, eff. 6-27-97; 90-65, eff. 7-7-97; 90-448,
eff. 8-16-97; 90-511, eff. 8-22-97; 90-576, eff. 3-31-98;
90-655, eff. 7-30-98; 90-766, eff. 8-14-98.)"; and
on page 158, in line 9, after "16-121.", by inserting "In
addition, a Tier I employee who has made the election under
paragraph (1) of subsection (a) of this Section shall receive
the right to also participate in the optional cash balance plan
established under Section 1-162. Finally, a Tier I employee who
has made the election under paragraph (1) of subsection (a) of
this Section shall receive the right to the early retirement
without discount option under Section 16-133.6."; and
on page 158, in line 17, after "16-121.", by inserting "In

09700SB1673ham008 - 23 - LRB097 21834 EFG 70523 a
addition, a Tier I retiree who returns to active service and
has made the election under paragraph (1) of subsection (a-5)
of this Section shall receive the right to also participate in
the optional cash balance plan established under Section
1-162."; and
on page 159, in line 1, after "requirement.", by inserting "In
addition, a Tier I employee who has made the election under
paragraph (2) of subsection (a) of this Section shall not
receive the right to participate in the optional cash balance
plan established under Section 1-162. Finally, a Tier I
employee who has made the election under paragraph (1) of
subsection (a) of this Section shall receive the right to the
early retirement without discount option under Section
16-133.6."; and
on page 159, in line 12, after "requirement.", by inserting "In
addition, a Tier I retiree who returns to active service and
has made the election under paragraph (2) of subsection (a-5)
of this Section shall not receive the right to participate in
the optional cash balance plan established under Section
1-162."; and
on page 171, below line 12, by inserting the following:
"(40 ILCS 5/16-152) (from Ch. 108 1/2, par. 16-152)

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Sec. 16-152. Contributions by members.
(a) Each member shall make contributions for membership
service to this System as follows:
(1) Effective July 1, 1998, contributions of 7.50% of
salary towards the cost of the retirement annuity. Such
contributions shall be deemed "normal contributions".
(2) Effective July 1, 1969, contributions of 1/2 of 1%
of salary toward the cost of the automatic annual increase
in retirement annuity provided under Section 16-133.1.
(3) Effective July 24, 1959, contributions of 1% of
salary towards the cost of survivor benefits. Such
contributions shall not be credited to the individual
account of the member and shall not be subject to refund
except as provided under Section 16-143.2.
(4) Effective July 1, 2005, contributions of 0.40% of
salary toward the cost of the early retirement without
discount option provided under Section 16-133.2. This
contribution shall cease upon termination of the early
retirement without discount option as provided in Section
16-176.
(a-1) In addition to the contributions required under
subsection (a), a member who elects to participate in the
optional cash balance plan under Section 1-162 shall pay to the
System for the purpose of participating in the optional cash
balance plan a contribution of 2% of each payment of
compensation received while he or she is a participant in the

09700SB1673ham008 - 25 - LRB097 21834 EFG 70523 a
optional cash balance plan. These contributions shall not be
used for the purpose of determining any benefit under this
Article except as provided in the optional cash balance plan.
(b) The minimum required contribution for any year of
full-time teaching service shall be $192.
(c) Contributions shall not be required of any annuitant
receiving a retirement annuity who is given employment as
permitted under Section 16-118 or 16-150.1.
(d) A person who (i) was a member before July 1, 1998, (ii)
retires with more than 34 years of creditable service, and
(iii) does not elect to qualify for the augmented rate under
Section 16-129.1 shall be entitled, at the time of retirement,
to receive a partial refund of contributions made under this
Section for service occurring after the later of June 30, 1998
or attainment of 34 years of creditable service, in an amount
equal to 1.00% of the salary upon which those contributions
were based.
(e) A member's contributions toward the cost of early
retirement without discount made under item (a)(4) of this
Section shall not be refunded if the member has elected early
retirement without discount under Section 16-133.2 and has
begun to receive a retirement annuity under this Article
calculated in accordance with that election. Otherwise, a
member's contributions toward the cost of early retirement
without discount made under item (a)(4) of this Section shall
be refunded according to whichever one of the following

09700SB1673ham008 - 26 - LRB097 21834 EFG 70523 a
circumstances occurs first:
(1) The contributions shall be refunded to the member,
without interest, within 120 days after the member's
retirement annuity commences, if the member does not elect
early retirement without discount under Section 16-133.2.
(2) The contributions shall be included, without
interest, in any refund claimed by the member under Section
16-151.
(3) The contributions shall be refunded to the member's
designated beneficiary (or if there is no beneficiary, to
the member's estate), without interest, if the member dies
without having begun to receive a retirement annuity under
this Article.
(4) The contributions shall be refunded to the member,
without interest, within 120 days after the early
retirement without discount option provided under Section
16-133.2 is terminated under Section 16-176.
(Source: P.A. 93-320, eff. 7-23-03; 94-4, eff. 6-1-05.)"; and
on page 183, in line 7, by changing "by more than 6%," to "by
more than 6%,"; and
on page 183, in line 11, by changing "portion of the" to
"portion of the"; and
on page 183, in line 12, by changing "that is in excess of 6%"

09700SB1673ham008 - 27 - LRB097 21834 EFG 70523 a
to "that is in excess of 6%"; and
on page 184, by replacing lines 1 through 8 with "service on or
after its effective date.".